PIC invests £67 million in innovative Bromley affordable housing deal

London, 31 August 2021 – Pension Insurance Corporation plc (“PIC”), a specialist insurer of defined benefit pension funds, has completed a unique investment with the London Borough of Bromley (“LBB”), to help alleviate local emergency homelessness. The £67 million deal will be used to purchase up to 300 affordable properties outright. This will significantly reduce the Council’s current cost of emergency nightly accommodation, for example by eliminating reliance on hotel rooms, for families in need of temporary accommodation across the Borough.

This innovative funding concept is a key part of LBB’s Housing and Homelessness strategy. The properties will be managed by specialist housing group, Orchard and Shipman.

Key points of the transaction:

• £67 million long-dated funding maturing in 2071
• The inflation-linked funds are secured on the housing assets

Councillor Peter Morgan, Bromley’s Executive Councillor for Renewal, Recreation and Housing, said: “We are delighted to have completed this deal, which will allow us to help families in genuine need whilst better managing Bromley’s budget. I’d like to thank the team at PIC for their flexible and innovative approach to structuring this deal, which is positive news as we seek to proactively tackle the blight of temporary homelessness which can be so distressing for those families affected.” 

Max Cawthorn, Investment Strategy Manager at PIC, said: “We are proud to have worked with the London Borough of Bromley on this innovative funding deal. As a long-term investor, PIC has a track record of working with borrowers to structure bespoke deals that meet their needs, match secure cashflows with the pensions we will be paying decades into the future, and benefit society. This investment ticks all those boxes and we are really pleased to be able to help alleviate homelessness in one of the largest boroughs in London.”

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Notes to Editors:

For further information please contact:

Pension Insurance Corporation     

Jeremy Apfel                         
+44 (0)20 7105 2140                         
apfel@pensioncorporation.com

About Pension Insurance Corporation
The purpose of PIC is to pay the pensions of its current and future policyholders. PIC provides secure and stable retirement incomes through leading customer service, comprehensive risk management and excellence in asset and liability management. At 31 December 2020, PIC had insured 273,500 pension scheme members and had £49.6 billion in financial investments, accumulated through the provision of tailored pension insurance buyouts and buy-ins to the trustees and sponsors of U.K. defined benefit pension schemes. Clients include FTSE 100 companies, multinationals and the public sector. PIC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (FRN 454345). For further information please visit www.pensioncorporation.com